The Amazing Story Of How Coconut Water Took Over The Beverage Industry

By now, you’ve probably noticed that Vita Coco, Zico and O.N.E. are on the shelves of grocery and health food stores across the U.S.Coconut water has taken on the status of a “super-hydrating” miracle drink, and the major brands have celebrities like Rihanna and Madonna promoting its products.

But as it increases in popularity, so too does the scrutiny. Is coconut water as nutritious as promoters say it is? Last month, consumers filed a class action lawsuit against Vita Coco and O.N.E. over false advertising claims.

We took a look at the evolution of the coconut water trend.

For thousands of years, farmers, hunters, warriors and general laborers of the tropics have known of the coconut's hydration abilities

This makes coconut water a 'more natural' alternative to sports drinks, energy drinks, and sodas.

Another key selling point for the product is that it keeps you young

Coconut water is expensive: it's $2 per bottle. Manufacturers justify the cost by claiming that the electrolytes and vitamins found in coconut water improve circulation, slow the ageing process, fight viruses, boost immunity and reduce the risk of stroke, heart disease and cancer.

It only took five years for coconut water to establish itself as a multi-million-dollar industry

A Merill Lynch analysis in 2009 showed that coconut water went from virtually zero sales in 2004 to $30 to $35 million annually in five years.

'Naturally healthy' products raked in $223 billion in global sales in 2009, with naturally healthy beverages (like Naked Juice) making up 63% of that category.

In 2010, PepsiCo bought out a majority stake in O.N.E., the Brazilian-based company, while Coca-Cola took a stake in Zico, based in California. These investments will helped coconut water move from warehouse distribution to direct store delivery, a huge step in becoming a major player in the U.S. beverage market.

Celebrities like Rihanna have promoted or invested in the major coconut water brands

Although recently, fitness experts have started backing away from the product

Despite its popularity, fitness experts and enthusiasts are realising that the most important element in a sports drink -- protein -- is noticeably absent from coconut water, which only has a couple grams per serving when 15 to 17 grams would be optimal. A sufficient amount of sodium is also lacking.

In fact, Vita Coco and O.N.E. are now under fire for lying about the nutritional value of their product

Vita Coco manufacturers face a $5 million class action lawsuit filed last month from consumers who claim the products 'super-hydrating' benefits are false. A false advertising suit was also brought against O.N.E.

'The lawsuits, brought by Kevin Shenkman on behalf of coconut water consumers, were spurred by a new study by ConsumerLab.com that tested the contents of three brands of coconut water: Vita Coco, O.N.E. and Zico. Only one of the drinks, Zico, delivered on its nutritional claims in the study. The other two had 'far fewer' electrolytes than claimed, according to the report issued last week, with considerably less sodium and magnesium than the amounts listed on their nutrition labels.'

While coconut water may not be a miracle drink, it still fills grocery shelves nationwide

As is the case with many health food products, coconut water is likely no more nutritious than fresh fruit and water.

But with continued aggressive branding and investment by big-name companies, expect coconut water to gain global market share in the coming years.